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Distribution Directions is published by Brown Logistics Services and written by
Erv Drewek
Erv Drewek
Distribution / Postal Affairs Manager

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Debbie Cooper
Vice President - Business Services

Erv Drewek
Postal Affairs Manager

Jason Chambers
Mail Operations Manager

Nancy Keane
Postal Affairs Specialist

Bryan Vertigan
Waseca Distribution Specialist

Rich DeMenno
East Greenville Distribution Specialist

Mark Resh
Woodstock Distribution Specialist

Lori Bresnahan
List Processing Specialist

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Dist. Directions Archives

Distribution Directions Vol 9 No 35: Mobile Barcode Promotion, Saving the Postal Service Website, Mail to Rails, Fed Ex May Feel Squeeze of Postal Service Cuts | Print |  E-mail
Tuesday, September 06, 2011

Mobile Barcode Promotion a Success

Nearly one third of all Standard Mail in the past two months contained a QR code, thanks to a U.S. Postal Service summer promotion that ended August 31st. Tom Foti, the agency’s Manager of Marketing Mail, said the USPS is "very pleased" with the results of the two-month promotion, which he said beat expectations. The QR code promotion offered commercial mailers an upfront 3% discount on the prices for First-Class Mail and Standard Mail letters and flats, which included a QR code inside or on the mailpieces. Did the promotion increase mail volume? Foti says initial indications are positive, but that the USPS needs to dig deeper into analytics. The most important metric will be the longer-term value that these customers get from using mail in ways that is more relevant and effective, Foti says. Currently, there are no firm plans for another QR code promotion, but Foti says USPS hopes to have another one in 2012, and that specifics of a sequel have not been determined.

Source: Multichannel Merchant

Rep. Issa Launches ‘Saving the Postal Service’ Website

Rep. Darrell Issa (R-Calif.), chairman of the Chairman of the House Oversight and Government Reform Committee, has launched a website counting down the days until the U.S. Postal Service could default. “Saving the Postal Service” details proposed legislation from Issa and Rep. Dennis Ross (R-Fla.) they say will help save the Postal Service from a default. The Issa-Ross Postal Reform Act would allow the USPS, among other things, to end Saturday delivery and require postal employees to pay the same amount of health and life insurance premiums as other federal employees. The proposal also allows the USPS to sell advertising space on vehicles and would establish an independent authority to cut costs every 30 days if the USPS cannot pay its bills. “Only serious cost-cutting structural reforms that reduce workforce costs and rightsize infrastructure can save the Postal Service and prevent a multi-billion taxpayer funded bailout,” Issa said Aug. 5 in a statement.

Source: ExecutiveGov

Choo-Choo, Mail to Rails

The USPS has aggressively moved to reduce costs by consolidating its processing network and realigning its delivery facilities. However, it has essentially eliminated rail transportation, which is the least costly way to move mail long distances. During the recent economic downturn, railroads invested heavily in infrastructure to improve service. Private industry shippers of time-sensitive materials have responded to these improvements by shifting volume from highway to rail. UPS (the largest rail customer in the U.S.) attempts to put any package traveling over 750 miles on rail. JB Hunt, one of the Postal Service’s largest highway contractors, has shifted a substantial freight volume to rail and now earns more than one-third of its overall revenue from intermodal rail transportation. Although it would require some additional efforts, the potential savings to the Postal Service of converting from highway to rail could be tremendous.

Source: OIG

Fed Ex May Feel Squeeze of Postal Service Cuts

The U.S. Postal Service, which spends about $15 billion a year on products and services, is pressing its more than 20,000 suppliers for $1 billion a year in cost cuts as it faces possible insolvency as soon as Sept. 30. The cost-cutting has implications for many of the largest Postal Service contractors, said David Hendel, a Husch Blackwell LLP partner who specializes in postal contracting. Companies at risk of losing postal revenue range from Northrop Grumman Corp. and Siemens AG, to FedEx Corp. (FDX), the largest contractor; to closely held trucking company Pat Salmon & Sons, which doesn’t list any business line on its website other than hauling mail.

Source: Bloomberg

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